Congress must end restrictions on COVID-19 small business relief based on criminal history

We joined with civil rights organizations across the country to urge Congress to reverse restrictions on loans and grants to small businesses for COVID-19 relief based on owners' arrest or conviction history.

April 10, 2020–As part of the CARES Act, Congress has authorized $350 billion in loans and grants administered by the Small Business Administration (SBA) to support small businesses through two programs, the Paycheck Protection Program and the Economic Injury Disaster Loans program. We joined more than a dozen civil rights organizations across the country to call on Congress to remove barriers to receiving COVID-19 aid that these programs place on small businesses owners with arrest or conviction history.

Our letter highlights the already high unemployment rates among Americans with criminal histories, as well as the fact that a significant number of people with records have established their own businesses, driven by the difficulties they face in the job market. “Moreover, these businesses also tend to be more willing to hire employees with a record,” our letter reads. “Driving them out of business will result in a severe impact on employment of a population that already is disadvantaged in the workplace.”

This letter was sent to congressional lawmakers and advocates across the country, including U.S. Senator Bob Casey of Pennsylvania.

We request that Congress act now by directing the Small Business Administration to eliminate new restrictions introduced as part of these programs on aid to small businesses owned by people with criminal histories, relax existing restrictions, and clarify confusion on application forms and guidelines.